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Country Operations Business Plan

December 2017

Philippines 2018–2020

This document is being disclosed to the public in accordance with ADB’s Public Communication’s Policy 2011.

CURRENCY EQUIVALENTS (as of 28 November 2017)

Currency unit – peso (₱)

₱1.00 = $0.01989 $1.00 = ₱50.28300

ABBREVIATIONS

ADB – Asian Development Bank AFD – Agence Française de Développement ASEAN – Association of Southeast Asian Nations COBP – country operations business plan CPS – country partnership strategy GDP – gross domestic product OCR – ordinary capital resources PDP – Philippine Development Plan PPP – public–private partnership SERD – Southeast Asia Department TA – technical assistance

NOTES

(i) The fiscal year (FY) of the Government of the Philippines ends on 31 December.

(ii) In this report, "$" refers to United States dollars.

Vice-President Stephen P. Groff, Operations 2 Director General Ramesh Subramaniam, Southeast Asia Department (SERD) Country Director Richard Bolt, Philippines Country Office, SERD Team leader Joven Balbosa, Principal Country Specialist, SERD Team members Oscar Amiel Badiola, Programs Officer, SERD

Ruchel Roque-Villaroman, Project Analyst, SERD Philippines Country Team

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS Page

I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY 1

II. INDICATIVE RESOURCE PARAMETERS 2

III. SUMMARY OF CHANGES TO LENDING AND NONLENDING PROGRAMS 3

APPENDIXES

1. Country Assistance Results Areas 5 2. List of Linked Documents 8 3. Indicative Assistance Pipeline 9 4. Assistance Program for Current Year 15 5. Indicative Knowledge Publications and Events 17

1

I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY

1. The country partnership strategy (CPS), 2011–2016 for the Philippines 1 focused on achieving high, inclusive, and sustainable growth through four key development outcomes: (i) an improved investment climate and private sector development, (ii) more effective delivery of social services, (iii) reduced environmental degradation and vulnerability to climate change, and (iv) strengthened governance. In 2017, ADB and the Government of the Philippines agreed on an operational program for 2018–2020 that extends the CPS by one year through the country operations business plan (COBP), 2018–2020. This COBP closely aligns with the recently released Philippine Development Plan (PDP), 2017–2022.2 The key results areas for each sector are presented in Appendix 1. 2. The Philippines’ economy enjoyed a 6.2% per annum average increase from 2010 to 2015. In 2016, GDP growth accelerated to 6.9%, which was at the high end of the government’s target of 6–7%. The national poverty incidence fell from 25.2% of the population in 2012 to 21.6% in 2015. Nevertheless, the current poverty rate of 2015 still translates to 21.9 million poor people; and with the highest population growth rate in Southeast Asia, poverty remains persistently high. Regional and provincial disparities persist. The poverty rate for Mindanao was 36.2% in 2015; compared to 13.1% for Luzon and 28.2% for Visayas. Vulnerable areas frequented by typhoons (Eastern Visayas) and those affected by conflicts (Southern Mindanao) represent the poorest provinces in the country. Poor infrastructure is consistently among the key factors that constrain the economy from being more competitive and inclusive. Insufficient investment in transport, communication, water, and energy infrastructure will constrain the development of existing productive sectors, limit the country’s ability to attract needed investments, and, ultimately, limit growth and poverty reduction. 3. Sustained economic growth has led to notable improvements in employment, but the quality of job creation and growth remains a problem. Underemployment remains persistently high at 18.3% in 2016, indicating low labor productivity and insufficient compensation. Labor market demand has shifted towards college-educated and highly-skilled workers, making it more difficult for those without post-secondary schooling to find work. Finally, the school-to-work transition for many young Filipinos has been slow and is often associated with substantial uncertainty. 4. On 11 October 2016, President Rodrigo R. Duterte issued Executive Order No. 5 approving the country’s first long-term vision, which aims to ensure strategic continuity across government administrations for key programs, development, and poverty reduction.3 PDP, 2017–2022 was approved on 20 February 2017 and is the first medium-term plan that is geared towards attaining the Ambisyon Natin 2040. It aims to lay a stronger foundation for inclusive growth, a high trust society, and a globally competitive knowledge economy. For the medium-term, the PDP, 2017–2022 aims to achieve this agenda by regaining trust in public institutions, reducing inequality, and increasing the country’s growth potential. Key cross-cutting themes that will shape the government’s strategic priorities will involve initiatives to (i) ensure peace and security; (ii) accelerate strategic infrastructure development; (iii) ensure safety and build resilience; and (iv) ensure ecological integrity and a clean and healthy environment.

1 ADB. 2011. Country Partnership Strategy: Philippines, 2011–2016. Manila. Available from the List of Linked

Documents, Appendix 2. 2 Government of the Philippines. 2017. Philippine Development Plan, 2017–2022. Manila. Available from the List of

Linked Documents, Appendix 2. 3 Government of the Philippines. 2016. Ambisyon Natin 2040. Manila. Available from the List of Linked Documents,

Appendix 2.

2

5. The President’s Executive Order No. 27, issued on 1 June 2017, supports the PDP, 2017–2022. The order directs all agencies at both the national and local government levels, including government-owned and controlled corporations, “to adopt and disseminate the PDP, 2017–2022 [align their programs], and undertake efforts leading to its [full] implementation.” 6. Against this background, the COBP will maintain alignment with government priorities and have a strategic focus on inclusive and sustained development in all regions of the country. It will continue to align with the strategic priorities of CPS, 2011–2016 as it supports the government’s commitment to scale-up expenditure for infrastructure and social services, and implement further reforms to boost investment, raise employment and productivity, and strengthen government service delivery, especially at local levels. The COBP will also establish the groundwork for updating the strategic priorities being developed in the upcoming CPS for 2018–2023 by further enhancing investments in transport infrastructure; regional development and local service delivery, especially in Visayas and Mindanao; inclusive finance; and employment and education services. 7. The COBP, 2018–2020 is aligned with ADB’s long-term strategic framework 2008–2020 (Strategy 2020).4 It supports all five core areas of operations in the strategy—infrastructure, environment, regional cooperation and integration, finance sector development, and education. Infrastructure operations will be the main channel of contribution to the strategy’s three strategic agendas of inclusive economic growth, environmentally sustainable growth, and regional integration.

II. INDICATIVE RESOURCE PARAMETERS

8. The Philippines, a group C developing member country, is eligible for regular ordinary capital resources (OCR) lending. The indicative resources available for commitment during 2018–2020 for sovereign operations amount to $2.56 billion. ADB will actively explore cofinancing and funding from other sources, including regular OCR regional cooperation and integration set-aside. An indicative sovereign lending program of $3.68 billion, 43.8% higher than indicative resources, is proposed in Appendix 3.5 9. During 2018–2020, ADB also expects to deliver technical assistance (TA) worth $25.1 million, to be financed from internal and other financing sources. Efforts will continue to supplement these resources, whenever feasible, with ADB-administered trust funds and other external sources. ADB's Southeast Asia Department (SERD) will work closely with the Office of Cofinancing Operations to identify potential cofinanciers, which may include the Abu Dhabi Fund for International Development, Agence Française de Développement, European Investment Bank, European Union, Japan International Cooperation Agency, Organization of the Petroleum Exporting Countries Fund for International Development, the World Bank, Association of Southeast Asian Nations (ASEAN) Infrastructure Fund, and other global climate funds (e.g., the Green Climate Fund). 10. ADB’s ongoing program for 2017 consists of four loans totaling $1.080 billion, and TA of $7.503 million from internal sources, $7.499 million from Canada, and $225,000 from the Urban Climate Change and Resilience Trust Fund (Appendix 4).

4 ADB. 2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank 2008–2020. Manila.

Available from the List of Linked Documents, Appendix 2. 5 The actual pipeline can deviate from the indicative resource allocation due to possible reallocation of OCR within

ADB’s Southeast Asia Department. Also, ADB will actively explore cofinancing, in consultation with the government, to fill any financing gaps.

3

11. ADB will continue to align non-sovereign operations with identified priority areas for the Philippines. ADB will continue to monitor the rollout of the government's public–private partnership (PPP) projects for financing consideration. ADB will also consider providing TA to the private sector for feasibility studies, capacity building, and other critical activities to support challenging infrastructure projects, introduce new concepts or technology, or build in-country capacity. ADB will also continue to pursue financial intermediation through local commercial banks, nonbanks, and private equity funds. 12. Knowledge work will continue to focus on analytical and advisory support for preparing lending operations, expanding investment in capacity development, applying lessons from monitoring and evaluation of operations for future investments, and developing and initiating government reform initiatives and innovations. Knowledge products and services planned for 2018 and delivered in 2017 are listed in Appendix 5.

III. SUMMARY OF CHANGES TO LENDING AND NONLENDING PROGRAMS

13. Changes from the 2017–2019 program include:

(i) one project on the 2018 firm/2017 standby list has been approved in 2017: Infrastructure Preparation and Innovation Facility;

(ii) five projects and two programs added to the 2018–2020 pipeline: Long-Term Capacity Building Project to Foster a Culture of Competition in Government (2018 firm); Malolos–Clark Railway Project (2019 firm); Central Spine Connectivity Project (2020 firm); Mindanao River Basin Flood Control Project (2020 firm); North–South Commuter Rail – South Line, Tutuban to Los Baños (2020 firm); Facilitating Youth School-to-Work Transition Program, Subprogram 2 (2019 firm); and Inclusive Finance Development Program, Subprogram 2 (2020 firm);

(iii) two projects broadened in scope and shifted: Metro Manila Transport Project (formerly Metro Manila Bus Rapid Transit–Epifanio de los Santos Avenue Project) from 2017 standby to 2018 firm; and Regional Development Project, Phase 1 – South Central Mindanao (merger of Mindanao Development Program and Enhancing Rural Enterprise and Rural Employment Program) from 2017 firm to 2018 firm;

(iv) two projects shifted from 2018 firm to 2018 standby/2019 firm: Secondary Education Support Project (formerly Second Senior High School Support Program) and Disaster Risk Financing Project, Phase 1;

(v) one project shifted from 2017 firm to 2018 firm: Davao Public Transport Modernization Project; one project shifted from 2018 firm to 2019 firm: Metro Manila Water Supply Project (formerly Metro Manila Water Supply and Sanitation Project); and two projects shifted from 2019 firm to 2020 firm: Improving Growth Corridors in Mindanao Road Sector Project (formerly Improving National Connectivity for Mindanao Development Project) and Expanded Social Assistance Project (formerly Social Protection Support Program);

(vi) one program deferred from 2018 firm to 2021 or 2022: ASEAN Economic Community Support Program Facility;

(vii) two projects deferred from 2019 firm to 2021 or 2022: Laguna Lakeshore Road Development Project (formerly Lake Laguna Flood Management/Integrated Water Resource Management Program) and Sustainable Rural Power Supply Development Project (formerly Energy Sector Development Project);

(viii) two projects dropped from the 2018 to 2020 pipeline: Solid Waste Management

4

Sector Project and Angat Water Transmission Improvement Project Phase 2; (ix) two investment grants added to 2018: Empowering Bangsamoro Communities

through Adult Literacy and Productivity Enhancement Programs, to be financed from a trust fund; and Marawi Recovery and Reconstruction Assistance, from the Urban Climate Change Resilience Trust Fund;

(x) one knowledge support technical assistance advanced from 2019 to 2018: Inclusive Financial Sector Strengthening (formerly Financial Inclusion for Small and Medium Enterprises);

(xi) one transaction technical assistance (TA) broadened in scope and shifted from 2017 to 2019: Strengthening Capacity for Regional Investment Planning and Coordination in South Central Mindanao (formerly Strengthening Capacity for Implementing the Rural Enterprise and Rural Employment Program);

(xii) two TA projects shifted from 2017 to 2018: Preparing the Laguna Lakeshore Road Development Project (formerly Lake Laguna Flood Management/Integrated Water Resource Management Program), and Preparing the Improving Growth Corridors in Mindanao Road Sector Project, Phase 2 (formerly Improving the National Connectivity for Mindanao Development Project); one TA project shifted from 2017 to 2019: Preparing the Metro Manila Water Supply Project, Phase 2 (formerly Angat Water Transmission Improvement Project); one TA project shifted from 2018 to 2019: Preparing the Third Education Sector Improvement Program; and two TA projects shifted from 2019 to 2020: Support for Infrastructure Program; and Support for the Expanded Social Assistance Project;

(xiii) Twelve TA projects added to the 2018–2020 program: Preparing the Central Spine Connectivity Project (2018); Preparing the Mindanao River Basin Flood Control Project (2018); Preparing the Regional Development Project, Phase 2 to 4 (Supplementary) (2018); Preparing for the Sustainable Rural Power Supply Development Project (2018); Preparing the Metro Manila Railway Projects (2018); Encouraging Private Sector Participation in Infrastructure (2018); Enterprise-led Learning Networks (2018); Preparing the Metro Manila Transport Project (Supplementary) (2018); Preparing for the Central Spine Connectivity Project, Phase 2 (2019); Preparing for the National Greenways and Non-Motorized Transport Development Project (2019); Preparing for the North-Eastern Luzon Expressway Project (2019); and Preparing Additional Support for Urban Development and Water Services (2020).

Appendix 1 5

COUNTRY ASSISTANCE RESULTS AREAS

Key Country Development Outcomes that ADB Contributes to

ADB

Key Areas of Assistance Indicative Resource

Allocation in 2018–2020 Changes from Last COBP

1. Transport

Improved accessibility, sustainability, and climate resiliency of transport infrastructure and services

Development and upgrading of nonurban roads (national roads, road safety, road maintenance, and asset management; road transport policy and reforms) Development of urban public transport system (rehabilitation and new infrastructure) and improvement of systems management Development and improvement of connectivity infrastructure

Amount: $990 million (OCR) and $40 million (cofinancing) Share of COBP envelope: 26.90%

Davao Public Transport Modernization Project shifted from 2017 to 2018 Regional Development Program – South Central Mindanao (merged project of Enhancing Rural Enterprise and Rural Employment Program and Mindanao Development Program) added to the 2018 pipeline Malolos–Clark Railway Project, PFR1 added to the 2019 pipeline Improving Growth Corridors in Mindanao Road Sector Project, Phase 2 (formerly Improving National Connectivity for Mindanao Development) shifted from 2019 to 2020 Central Spine Connectivity Project, PFR1 added to the 2020 pipeline North–South Commuter Rail – South Line, Tutuban to Los Baños, PFR1 added to the 2020 pipeline

2. Education

Improved access to and quality of basic education and employment

Education sector development Supporting youth school-to-work transition

Amount: $450 million Share of COBP envelope: 12.23%

Secondary Education Support Project (formerly Secondary Education Support Program) shifted from 2018 to 2019 Facilitating Youth School-to-Work Transition, Subprogram 2 added to the 2019 pipeline

3. Agriculture, Natural Resources, and Rural Development

Increased rural productivity and access to rural employment and business development

Support to regional and inter-provincial planning and monitoring approach to integrated area development


Regional Development Program – South Central Mindanao (merged project of Enhancing Rural Enterprise and Rural Employment Program and Mindanao Development Program) added to the 2018 pipeline

Appendix 1

6


ADB



Mindanao River Basin Flood Control Project added to the 2020 pipeline

4. Water and Other Urban Infrastructure and Services

Enhanced access of population to sustainable and climate-resilient water, sanitation, and waste management facilities and services

Developing urban and rural water supply Policy reforms and institutional capacity development for regulatory oversight, financial planning, and asset and water security management Integration of flood control infrastructure in river basins


Regional Development Program – South Central Mindanao (merged project of Enhancing Rural Enterprise and Rural Employment Program and Mindanao Development Program) added to the 2018 pipeline Metro Manila Water Supply Project (formerly Metro Manila Water and Sanitation Project) shifted from 2018 to 2019 pipeline Mindanao River Basin Flood Control Project added to the 2020 pipeline Laguna Lakeshore Road Development Project (formerly Lake Laguna Flood Management/ Integrated Water Resource Management Program) deferred to 2021–2022 and recategorized under Transport Solid Waste Management Sector Project is dropped Angat Water Transmission Improvement Project, Phase 2 is dropped

5. Public Sector Management

Improved investment climate, private sector development, and external competitiveness Improved decentralization and local governance Improved government policies and support services for youth employment

Advancing reforms and institutional development for public–private partnerships Advancing reforms and capacity development in public expenditure management and public administration for national and local government

Amount: $1,140 million Share of COBP envelope: 30.98%

Regional Development Program – South Central Mindanao (merged project of Enhancing Rural Enterprise and Rural Employment Program and Mindanao Development Program) added to the 2018 pipeline Long-Term Capacity Building Program to Foster a Culture of Competition in Government added to the 2018 pipeline

Appendix 1 7


ADB



Improved measures for social protection

Institutional and organizational development in government agencies to promote youth school-to-job transition employment opportunities Broadened support for social protection programs

Facilitating Youth School-to-Work Transition, Subprogram 2 added to the 2019 pipeline Expanded Social Assistance Project (formerly Social Projection Support Project) shifted from 2019 to the 2020 pipeline ASEAN Economic Community Support Program Facility deferred to 2021–2022

6. Finance

Deeper, more diversified, and resilient nonbank financial sector

Development of the finance sector, particularly capital markets and nonbank finance Support for inclusive finance including access to finance by MSMEs Support for the establishment of a disaster (tropical cyclones and earthquakes) insurance pool


Inclusive Finance Development Program, Subprogram 2 (formerly Reducing Income Inequality through Financial Inclusion) added to the 2020 pipeline

7. Energy

Improved access to reliable and secure supply of electricity

Amount: $0 million Share of COBP envelope: 0%

Sustainable Rural Power Supply Project (formerly Energy Sector Development Project) deferred to 2021–2022

ADB = Asian Development Bank; ASEAN = Association of Southeast Asian Nations; COBP = country operations business plan; MSME = micro, small, and medium-size enterprises; OCR = ordinary capital resources; PFR = periodic financing request. Source: ADB estimates.

8 Appendix 2

LIST OF LINKED DOCUMENTS http://www.adb.org/Documents/COBP/?id=PHI-2018

1. ADB Country Partnership Strategy: Philippines, 2011–2016 2. Philippine Development Plan, 2017–2022 3. Ambisyon Natin 2040 4. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank

2008–2020

http://www.adb.org/Documents/COBP/?id=PHI-2018

Appendix 3 9

INDICATIVE ASSISTANCE PIPELINE

Table A3.1: Lending Products, 2018–2020

Project/Program Name Sector Poverty

Targeting

Strategic Agendas

and Drivers of Change Division

Year of

TRTA/ PDA

Cost ($ million)

Total

ADB

OCR COL ADF

Grants Total Gov’t Co-

financea

2018 Firm

Davao Public Transport Modernization Project

TRA GI IEG, ESG, PAR

SETC 2015 110.0 70.0 0.0 0.0 70.0 … 40.0 b

Expanding Private Participation in Infrastructure Program, Subprogram 2 (PBL)

PSM GI

ESG, PSD, GCD

SEPF 2015 300.0 300.0 0.0 0.0 300.0 … …

Inclusive Finance Development Program (PBL) (formerly Reducing Income Inequality through Financial Inclusion)

FIN GI PSD, GCD SEPF 300.0 300.0 0.0 0.0 300.0 … …

Regional Development Project, Phase 1 – South Central Mindanao (formerly Mindanao Development Program)

ANR, PSM, TRA

TI-G ESG, RCI, EGM, PSD, GCD, KNS,

PAR

PhCO, SEUW

2017 100.0 100.0 0.0 0.0 100.0 … …

Metro Manila Transport Project (formerly Metro Manila BRT-EDSA Project) (MFF: $500 million), PFR1

TRA GI IEG, ESG, GCD

SETC 2017 100.0 100.0 0.0 0.0 100.0 … …

Long-Term Capacity Building Project to Foster a Culture of Competition in Government

PSM GI IEG, PSD, GCD

SEPF 50.0 50.0 0.0 0.0 50.0 … …

Empowering Bangsamoro Communities through Adult Literacy and Productivity Enhancement Programs

EDU TI-G IEG, GEN, GCD, KNS,

PAR

PhCO, SEHS

0.0 0.0 0.0 0.0 0.0 0.0 3.0 c

10 Appendix 3


Targeting

Strategic Agendas


Year of

TRTA/ PDA

Cost ($ million)

Total

ADB

OCR COL ADF


financea

Marawi Recovery and Reconstruction Assistance

WUS TI-G IEG, EGM, GCD, PAR

SEUW 0.0 0.0 0.0 0.0 0.0 0.0 5.0 d

Total 968.0 920.0 0.0 0.0 920.0 … 48.0

2018 Standby

Secondary Education Support Project (formerly Second Senior High School Support Program) (RBL)

EDU GI GEN, PSD, GCD, PAR

SEHS 2016 300.0 300.0 0.0 0.0 300.0 … …

Disaster Risk Financing, Phase 1

FIN TI-G ESG, PSD, GCD, KNS,

PAR

SEPF 100.0 100.0 0.0 0.0 100.0 … …

2019 Firm

Secondary Education Support Project (formerly Second Senior High School Support Program) (RBL)

EDU GI GEN, PSD, GCD, PAR

SEHS 2016 300.0 300.0 0.0 0.0 300.0 … …



PAR

SEPF 100.0 100.0 0.0 0.0 100.0 … …

Metro Manila Water Supply Project, Phase 1 (formerly Metro Manila Wastewater Improvement Project)

WUS GI ESG, PSD, GCD, KNS,

PAR

SEUW 2014 200.0 200.0 0.0 0.0 200.0 … …

Local Government Development Program (PBL)

PSM GI GCD SEPF 300.0 300.0 0.0 0.0 300.0 … …

Facilitating Youth School-to-Work Transition, Subprogram 2 (PBL)

EDU, PSM

TI-G EGM, PSD, GCD, PAR

SEPF, SEHS

300.0 300.0 0.0 0.0 300.0 … …

Appendix 3 11


Targeting

Strategic Agendas


Year of

TRTA/ PDA

Cost ($ million)

Total

ADB

OCR COL ADF


financea

Malolos–Clark Railway Project (MFF: $2 billion), PFR1


SETC 2017 200.0 200.0 0.0 0.0 200.0 … …

Total 1,400.0 1,400.0 0.0 0.0 1,400.0 … …

2020 Firm

Central Spine Connectivity Project, Phase 1 (MFF: $300 million), PFR1

TRA GI RCI, GCD SETC 2018 100.0 100.0 0.0 0.0 100.0 … …

Improving Growth Corridors in Mindanao Road Sector Project, Phase 2

TRA GI IEG, GCD SETC 2018 300.0 300.0 0.0 0.0 300.0 … …

Mindanao River Basin Flood Control Project

WUS/ ANR

GI ESG, EGM, GCD, KNS

SEER 2018 160.0 160.0 0.0 0.0 160.0 … …

Inclusive Finance Development Program, Subprogram 2 (PBL) (formerly Reducing Income Inequality through Financial Inclusion)

FIN GI PSD, GCD SEPF 300.0 300.0 0.0 0.0 300.0 … …

Expanded Social Assistance Project (formerly Social Protection Support Project)

PSM

TI-H EGM, GCD, KNS, PAR

SEHS 2018 300.0 300.0 0.0 0.0 300.0 … …

North-South Commuter Rail – South Line, Tutuban to Los Baños (MFF: $2 billion), PFR1


SETC 2017 200.0 200.0 0.0 0.0 200.0 … …

Total 1,360.0 1,360.0 0.0 0.0 1,360.0 … …

2020 Standby

Metro Manila Transport Project (MFF: $500 million), PFR2


SETC 2017 300.0 300.0 0.0 0.0 300.0 … …

12 Appendix 3


Targeting

Strategic Agendas


Year of

TRTA/ PDA

Cost ($ million)

Total

ADB

OCR COL ADF


financea

Regional Development Project, Phase 2 – Northern Mindanao

PSM, TRA, ANR

TI-G ESG, RCI, EGM, PSD, GCD, KNS,

PAR

PhCO, SEUW

2018 200.0 200.0 0.0 0.0 200.0 … …



PAR

SEPF 2019 100.0 100.0 0.0 0.0 100.0 … …

ADB = Asian Development Bank; ADF = Asian Development Fund; ANR = agriculture, natural resources, and rural development; BRT-EDSA = Bus Rapid Transit – Epifanio de los Santos Avenue; COL = concessional OCR lending; EDU = education; EGM = effective gender mainstreaming; ENE = energy; ESG = environmentally sustainable growth; FIN = finance; GCD = governance and capacity development; GEN = gender equity; GI = general intervention; Gov’t = government; IEG = inclusive economic growth; KNS = knowledge solutions; MFF = multitranche financing facility; OCR = ordinary capital resources; PAR = partnership; PDA = project design advance; PFR = periodic financing request; PhCO = Philippine Country Office; PPTA = project preparatory technical assistance; PSD = private sector development; PSM = public sector management; RCI = regional integration; SEEN = Southeast Asia Energy Division; SEER = Southeast Asia Environment, Natural Resources, and Agriculture Division; SEHS = Southeast Asia Human and Social Development Division; SEPF = Southeast Asia Public Management, Financial Sector, and Trade Division; SETC = Southeast Asia Transport and Communications Division; SEUW = Southeast Asia Urban Development and Water Division; TI-G = targeted intervention—geographic dimensions of inclusive growth; TRA = transport; WUS = water supply and other urban infrastructure and services. a Potential cofinanciers include Abu Dhabi Fund for International Development (ADFD), Agence Française de Développement (AFD), Asian Infrastructure Investment Bank

(AIIB), Australia, Canada, European Investment Bank (EIB), Japan International Cooperation Agency (JICA), OPEC Fund for International Development (OFID), the World Bank, ASEAN Infrastructure Fund, and other global climate funds (e.g., Global Climate Fund, or GCF).

b To be cofinanced by the private sector through public–private partnerships. c Investment grant to be financed by a trust fund. d Investment grant to be financed by the Urban Climate Change Resilience Trust Fund. Source: Asian Development Bank.

Appendix 3 13

Table A3.2: Nonlending Products and Services, 2018–2020

Sources of Funding

ADB Othersa

Assistance Name Sector Division Assistance

Type Source Amount

($'000) Source Amount

($'000) Total

($'000)

2018 Firm Preparing the Laguna Lakeshore Road Development

Project (formerly Lake Laguna Flood Management / Integrated Water Resource Management Program)

TRA SETC TRTA TASF-Other Sources

1,200 0 1,200

Preparing the Improving Growth Corridors in Mindanao Road Sector Project, Phase 2 (formerly Improving the National Connectivity for Mindanao Development Project)


1,200 0 1,200

Preparing the Central Spine Connectivity Project TRA SETC TRTA TASF-Other Sources

1,200 1,200

Preparing the Mindanao River Basin Flood Control Project

WUS SEER TRTA TASF-Other Sources

1,000 0 1,000

Preparing the Regional Development Project, Phase 2 to 4 (Supplementary)

TRA PHCO, SEUW

TRTA TASF-Other Sources

1,500 0 1,500

Preparing the Sustainable Rural Power Supply Development Project

ENE SEEN TRTA TASF-Other Sources

1,000 0 1,000

Implementing the Secondary Education Support Project (formerly Second Senior High School Support Project)

EDU SEHS TRTA TASF-Other Sources

800 0 800

Preparing the Expanded Social Assistance Project (formerly Social Protection Support Project)

PSM SEHS TRTA TASF-Other Sources

1,000 1,000

Inclusive Financial Sector Strengthening (formerly Financial Inclusion for Small and Medium Enterprises)

FIN SEPF TRTA TASF-Other Sources

500 0 500

Preparing the Metro Manila Railway Projects TRA SETC TRTA TASF-Other Sources

3,500 0 3,500

Encouraging Private Sector Participation in Infrastructure FIN SEPF TRTA TASF-Other Sources

800 800

Enterprise-led Learning Networks FIN SEPF KSTA Trust fund 1,500 1,500 Preparing the Metro Manila Transport Project

(Supplementary) TRA SETC TRTA PRITF 500 500

Total 13,700 2,000 15,700

2019 Firm Preparing the Metro Manila Water Supply Project, Phase

2 (formerly Angat Water Transmission Improvement Project)

WUS SEUW TRTA TASF-Other Sources

1,000 0 1,000

14 Appendix 3

Sources of Funding

ADB Othersa


Type Source Amount


($'000) Total

($'000)

Strengthening Decentralized Government Capacities PSM SEPF TRTA TASF-Other

Sources 500 0 500

Preparing the Third Education Sector Improvement Program

EDU, HLT, PSM

SEHS TRTA TASF-Other Sources

800 0 800

Strengthening Capacity for Regional Investment Planning and Coordination in South Central Mindanao (formerly Strengthening Capacity for Implementing the Rural Enterprise and Rural Employment Program)

PSM PHCO, SEUW

KSTA TASF-Other Sources

800 0 800

Preparing for the Central Spine Connectivity Project, Phase 2


1,500 0 1,500

Preparing the National Greenways and Non-Motorized Transport Development Project


1,000 0 1,000

Preparing the North-Eastern Luzon Expressway Project TRA SETC TRTA TASF-Other Sources

1,000 0 1,000

Total 6,600 6,600

2020 Firm Support for Infrastructure Program TRA SETC TRTA TASF-Other

Sources 1,500 0 1,500

Preparing Additional Support for Urban Development and Water Services

WUS SEUW TRTA TASF-Other Sources

1,000 0 1,000

Support for the Expanded Social Assistance Project (formerly Social Projection Support Project)

PSM SEHS TRTA TASF-Other Sources

300 0 300

Total 2,800 0 2,800

ADB = Asian Development Bank; ANR = agriculture, natural resources, and rural development; EDU = education; FIN = finance; HLT = health; KSTA = knowledge support technical assistance; PhCO = Philippines Country Office; PRITF = Project Readiness Improvement Trust Fund; PSM = public sector management; SEHS = Southeast Asia Human and Social Development Division; SEPF = Southeast Asia Public Management, Financial Sector, and Trade Division; SETC = Southeast Asia Transport and Communications Division; SEUW = Southeast Asia Urban Development and Water Division; TASF = Technical Assistance Special Fund; TRA = transport; TRTA = transaction technical assistance; WUS = water and other urban infrastructure and services. a Financing for some project preparatory support may draw from the Infrastructure Preparation and Innovation Facility (approved in 2017) and SERD-administered

Project Readiness Improvement (PRI) Trust Fund. ADB will aim to identify cofinancing opportunities, whenever feasible, with other external (preferably grant) sources from bilateral donors such as Australia, Canada, France and Spain; and ADB-administered trust funds, among them: (a) High Level Technology Fund; (b) Integrated Disaster Risk Management (IDRM) Fund; (c) Urban Climate Change Resilience Trust Fund (UCCRTF); (d) e-Asia and Knowledge Partnership Fund (EAKPF); (e) Water Financing Partnership Facility (WFPF); (f) Japan Fund for the Joint Crediting Mechanism (JFJCM), (g) Japan Fund for Poverty Reduction, etc.

Source: ADB estimates.

Appendix 4 15

ASSISTANCE PROGRAM FOR CURRENT YEAR

Table A4.1: Lending Products, 2017


Targeting

Strategic Agendas


Year of

TRTA/ PDA

Cost ($ million)

ADB

Total Regular

OCR COL ADF


finance

Facilitating Youth School-to-Work Transition Program (PBL)

EDU PSM

TI-G EGM, PSD, GCD, PAR

SEPF 2015 300.0 300.0 0.0 0.0 300.0 … 0.0

Encouraging Investment through Capital Market Reforms, Subprogram 2 (PBL)

FIN GI ESG, RCI, PSD, GCD,

PAR

SEPF 300.0 300.0 0.0 0.0 300.0 … 0.0

Infrastructure Preparation and Innovation Facility

WUS, TRA

TI-G ESG, RCI, PSD, GCD, KNS, PAR

SETC 2017 100.0 100.0 0.0 0.0 100.0 … 0.0

Improving Growth Corridors in Mindanao Road Sector Project (formerly Improving National Roads for Inclusive Growth in Mindanao Project)

TRA GI IEG, RCI, GCD

SETC 2014 380.0 380.0 0.0 0.0 380.0 … 0.0

Total 1,080.0 1,080.0 0.0 0.0 1,080.0 … 0.0

ADB = Asian Development Bank; ADF = Asian Development Fund; COL = concessional OCR lending; EDU = education; EGM = effective gender mainstreaming; ESG = environmentally sustainable growth; FIN = finance; GCD = governance and capacity development; GI = general intervention; Gov’t = government; IEG = inclusive economic growth; KNS = knowledge solutions; OCR = ordinary capital resources; PAR = partnership; PBL = policy based lending; PDA = project design advance; PSD = private sector development; PSM = public sector management; RCI = regional integration; SEPF = Southeast Asia Public Management, Financial Sector, and Trade Division; SETC = Southeast Asia Transport and Communications Division; TI-G = targeted intervention—geographic dimensions of inclusive growth; TRA = transport; TRTA = transaction technical assistance; WUS = water supply and other urban infrastructure and services. Note: For the period 2015–2017, investment loans comprised 42.3% of total lending, while policy-based loans comprised 57.7%. Source: Asian Development Bank.

16 Appendix 4

Table A4.2: Nonlending Products and Services, 2017

Sources of Funding

ADB Others


Type Source Amount


($'000) Total ($'000)

Support for the Nationwide Rollout of JobStart

Philippines (Supplementary) PSM SEPF TRTA 0 Canada 7,499 7,499

Strengthening Infrastructure Capacity and Innovation for Inclusive Growth

TRA, WUS, PSM

SETC TRTA TASF-Other Sources

5,000 0 5,000

Encouraging Investment through Capital Market Reforms Program

FIN SEPF TRTA TASF-Other Sources

500 0 500

Davao Public Transport Modernization Project (Supplementary)


503 0 503

Marawi Recovery and Reconstruction Assistance WUS SEUW 0 UCCRTF 225 225 Preparing the Metro Manila Transport Project TRA SETC TRTA TASF-Other

Sources 1,500 0 1,500

Total 7,503 7,724 15,227

ADB = Asian Development Bank; FIN = finance; PSM = public sector management; SEPF = Southeast Asia Public Management, Financial Sector, and Trade Division; SETC = Southeast Asia Transport and Communications Division; SEUW = Southeast Asia Urban Development and Water Division; TASF = Technical Assistance Special Fund; TRA = transport; TRTA = Transaction Technical Assistance; UCCRTF = Urban Climate Change Resilience Trust Fund; WUS = water and other urban infrastructure and services. Source: ADB estimates.

Appendix 5 17

INDICATIVE KNOWLEDGE PUBLICATIONS AND EVENTS

Table A5.1: Knowledge Publications and Events for 2018

Title of Publication or Event Subject Type

Department or Sector Group or Thematic Group

Technical Assistance

Subnational PPPs of Selected DMCs Economics Publication and documentation

(working paper) ERCD RETA 7507

Asian Development Bank and Philippines: Fact Sheet 2017 Governance Publication and documentation (awareness raising brochure or leaflet)

DER, SERD Non-TA

Philippines Asian Development Outlook 2018 Economics Publication and documentation (technical study)

SERD Non-TA

GCAP for BIMP-EAGA City in the Philippines Economics, Urban Development, RCI,

Publication and documentation (technical study)

SERD RETA 8814

BIMP-EAGA Investment Corridor Profiling II Industry, and Trade Publication and documentation (technical study)

SERD RETA 8814

Philippines Asian Development Outlook 2018 Supplement Economics Publication and documentation (technical study)

SERD Non-TA

Philippine Economic Update Economics Publication and documentation (technical study)

SERD Non-TA

Philippines Asian Development Outlook 2018 Update Economics Publication and documentation (technical study)

SERD Non-TA

PHI Energy Sector Assessment, Strategy, and Roadmap Energy Publication and documentation (technical study)

SERD Non-TA


SERD Non-TA

Gender-specific and Gender-Mainstreamed Articles Related to KALAHI-CIDSS National CDD Project in PHI

Gender Publication and documentation (awareness raising brochure or leaflet)

SERD TA 8590

Country Information Note – PHI Economics, Industry, and Trade

Publication and documentation (briefing material or talking

points)

SERD Non-TA

Climate Change Adaptation in Asian River Basins: Challenges and Prospects

ANR, Climate Change


SERD RETA 7987

Catalyzing Convergence of Economic Growth and Social Progress in the Philippines

Economics, Social Development and

Protection


SERD TA 8590

PHI Transport Sector ASR Transport Publication and documentation (technical study)

SERD Non-TA


SERD Non-TA

18 Appendix 5




Philippines Asian Development Outlook 2018 Supplement Economics Publication and documentation

(technical study) SERD Non-TA

International Financial Institutions Heads of Administration Meeting 2018

Finance Event organization OAS Non-TA

Strengthening Tax Policy and Reform in the Philippines Economics Publication and documentation (technical study)

SERD Non-TA

Country Partnership Strategy: Philippines, 2018–2023 Country Assistance Program and Strategy

Publication and documentation (awareness raising)

SERD

Non-TA

Country Operations Business Plan: Philippines, 2019–2021

Country Assistance Program and Strategy

Publication and documentation (awareness raising)

SERD Non-TA

Total number of publications = 20 Total number of events = 1

ADB = Asian Development Bank; ANR = agriculture and natural resources; ASEAN = Association of Southeast Asian Nations; ASR = assessment, strategy, and roadmap; BIMP-EAGA = Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area; CDD = community-driven development; DER = Department of External Relations; DMC = developing member country; GCAP = Green City Action Plan; OAS = Office of Administrative Services; PHI = Philippines; PPP = public–private partnerships; RCI = regional cooperation and integration; RETA = regional technical assistance; SERD = Southeast Asia Regional Department; SDCC = Sustainable Development and Climate Change Department; TA = technical assistance. Note: “Publications” may include databases, multimedia, and other forms of documentation. “Events” may include event organization and training or capacity development. Source: Asian Development Bank Knowledge Nexus.

Appendix 5 19

Table A5.2: Additional Knowledge Publications and Events Delivered in 2017




Assessment of Microinsurance as Emerging Microfinance for the

Poor: The Case of the Philippines Finance Publication and

documentation (technical study)

SERD Non-TA

Accelerating Financial Inclusion in South-East Asia with Digital Finance

Finance, ICT Publication and documentation (technical

study)

SERD Non-TA

ADBI Working Paper Series No. 662: Income and Consumption Inequality in the Philippines: A Stochastic Dominance Analysis of Household Unit Records

Economics, Poverty Publication and documentation (working

paper)

ADBI Non-TA

How Youth Can Lead Development Through Tech Governance, PSM Multimedia (blog post) DER Non-TA Key Indicators for Asia and the Pacific (KI) 2017 Special Report on

Meeting Asia’s Infrastructure Needs Capacity Development,

Economics, Governance, PSM

Publication and documentation (flagship

study)

ERCD Non-TA

Internal Audit – Capability Model Survey Capacity Development, Governance, PSM

Multimedia (PowerPoint) OAG Non-TA

Philippines Association of Government Internal Auditors (AGIA) Leadership Workshop

Capacity Development, Governance, PSM

Multimedia (PowerPoint) OAG Non-TA

Gender Equality, Leadership, and Journalism Gender Multimedia (video) SDCC Non-TA Asian Development Bank and Philippines: Fact Sheet 2016 Governance Publication and

documentation (awareness raising brochure or leaflet)

SERD Non-TA

Are infrastructure bonds the next big thing in infrastructure financing?

Finance, RCI, Industry, and Trade, Capacity

Development

Multimedia (blog post) ERCD RETA 8400

Electrifying Emerging ASEAN Through Off-Grid Distributed Renewable Energy Systems

Economics, Energy, Environment,

Governance, PSM

Multimedia (blog post) ADBI and DER Non-TA

Banking on the Future of Asia and the Pacific: 50 Years of the Asian Development Bank

Governance Publication and documentation (technical

study)

SPD Non-TA

Built to Last: National Community-Driven Development Project, Philippines

Education Multimedia (video) DER Non-TA

Philippines’ Nationally Determined Contribution Roadmap Environment, Energy, Industry, and Trade,

Transport

Multimedia (PowerPoint) OGC Non-TA

Philippines: Asia’s Rare Bright Spot Governance Multimedia (video) DER Non-TA ADB TTT Philippines: Updates Environment, RCI,

Capacity Development Multimedia (PowerPoint) OGC Non-TA

20 Appendix 5




Half a Century of Philippines–ADB Partnership Governance Multimedia (video) SERD/DER Non-TA Kapit-Bisig: Linking Arms—Five Decades of Philippines–ADB

Partnership Governance Publication and

documentation (awareness-raising)

SERD

Non-TA

Bookmark-teaser for Kapit-Bisig: Linking Arms Governance Publication and documentation

(awareness-raising)

SERD Non-TA

Let’s Reeducate Ourselves About the Environment—Who’s with Me?

Environment Multimedia (blog post) SERD Non-TA

Why Preserving Urban Heritage Makes Economic Sense Water Multimedia (blog post) SDCC Non-TA ADB Education Assistance Works: Just Ask Filipino Student

Levelyn Dapito Education Multimedia (video) DER Non-TA

Metro Manila’s Water PPP: Take-aways of a Regulator Water Multimedia (PowerPoint) SDCC Non-TA ADB Southeast Asia Working Paper Series No. 13: Scaling Up

Infrastructure Investment in the Philippines: Role of Public–Private Partnership and Issues

Private Sector, Governance

Publication and documentation (working

paper)

SERD Non-TA

Distinguished Water Leaders Series: Lessons from the Philippines' MWSS Regulatory Office

Water Event organization SDCC Non-TA

Forum on Philippine Health Agenda: Bringing UHC to Juan and Juana

Health Event organization SDCC RETA 8983

Consultation Meeting on Noncommunicable Disease Intervention Health Event organization SDCC RETA 8983 Consultation Workshop on ASEAN Skills Mobility Monitoring

System Economics Capacity development ERCD RETA 8881

Refresher Training for Enumerators of Youth Education Investment and Labor Market Outcome Survey

Education Capacity development ERCD RETA 8513

Training of enumerators for the Youth Education Investment and Labor Market Outcome Survey


Workshop on Information and Communication Technology in Social Safeguards

Safeguards Capacity development SDCC TA 8778

Training Workshop of Youth Education Investments and Labor Market Outcome Survey Team Leaders


Key Concepts on Post-Disaster Recovery: Risk-Informed Land Use Planning

Climate Change Publication and documentation (awareness

raising material)

SERD RETA 8812

Proceedings of the Regional Knowledge Forum on Post-Disaster Recovery: Risk-Informed Land Use Planning


raising material)

SERD RETA 8812

Shared Lessons from the Regional Knowledge Forum on Post-Disaster Recovery: Risk-Informed Land Use Planning


raising material)

SERD RETA 8812

Appendix 5 21




Country Operations Business Plan: Philippines, 2018–2020 Country Assistance

Program and Strategy Publication and

documentation (awareness raising material)

SERD

Non-TA

Framework Strategy for Growth Corridors in Mindanao Governance Publication and documentation (awareness

raising material)

SERD Non-TA

Philippines Country Knowledge Strategy and Plan, 2012–2016 Country Assistance Program and Strategy

Publication and documentation (awareness

raising material)

SERD Non-TA

Total number of publications = 30 Total number of events = 8

ADB = Asian Development Bank; ADBI = Asian Development Bank Institute; ASEAN = Association of Southeast Asian Nations; DER = Department of External Relations; ERCD = Economic Research and Regional Cooperation Department; ICT = information and communication technology; MWSS = Metropolitan Waterworks and Sewerage System; OAG = Office of the Auditor General; OGC = Office of the General Counsel; PPP = public-private partnerships; PSM = public sector management; RCI = regional cooperation and integration; RETA = regional technical assistance; SERD = Southeast Asia Regional Department; SDCC = Sustainable Development and Climate Change Department; SPD = Strategy, Policy and Review Department; TA = technical assistance; Tech = technology; TTT = Train-the-Trainers. Note: “Publications” may include databases, multimedia, and other forms of documentation. “Events” may include event organization and training or capacity development. The table includes additional knowledge publications and events delivered outside the list of indicative knowledge publications and events included in the 2017 country operations business plan. Source: Asian Development Bank Knowledge Nexus.